Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, accounting software specialist Intuit (Nasdaq: INTU ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Intuit's business and see what CAPS investors are saying about the stock right now.
Intuit facts
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Headquarters (Founded)
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Mountain View, Calif. (1983)
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Market Cap
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$17.0 billion
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Industry
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Application software
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Trailing-12-Month Revenue
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$3.55 billion
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Management
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President/CEO Brad Smith (since 2008)
Vice President/CFO R. Neil Williams (since 2008)
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Return on Equity (Average, Past 3 Years)
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21.6%
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Cash/Debt
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$892 million / $998 million
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Competitors
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Jackson Hewitt Tax Service (NYSE: JTX )
H&R Block (NYSE: HRB )
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 95% of the 522 members who have rated Intuit believe the stock will outperform the S&P 500 going forward. These bulls include NEVERFADE and MoneyDocSchloss.
A couple of months ago, NEVERFADE touched on Intuit's franchise appeal: "Turbo Tax is the best of breed. Quick Books is best of breed. Great way to play the comeback of the American small business. Turbo Tax is like the Netflix of tax filing industry while HR Block/ Jackson Hewitt etc are the Blockbuster Video."
Over the next five years, in fact, Intuit is expected to grow its bottom line at a solid rate of 13.4% annually. That's faster than tax return rivals Jackson Hewitt (8%) and H&R Block (10%), as well as other application software plays like Microsoft (Nasdaq: MSFT ) (10.3%).
CAPS member MoneyDocSchloss expands on the Intuit outperform argument:
Great business model for bringing back repeat customers for Turbo Tax. And they have some pricing power. This year's fees were roughly 25% higher than last years'. If you're an average Joe, it's more convenient to just cough up the extra $5-$10 than to take your business elsewhere.
Quickbooks and Quicken are in great use.
And Verizon is promoting the small-business websites powered by Intuit.
It all adds up that this is just an attractive company.
What do you think about Intuit, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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